The reading covers the notion of valuing a customer over the entirety of their purchase for their form, or customer lifetime value (CLV). 1. Address these prompts   1. To calculate CLV percisely requires precise numbers that are often only available to larger firms with large customers and large datasets. Is it necessary to calculate CLV percisely? Explain.   2. How might a small business or entrepreneur find the CLV concepts useful in making decisions?   3. How would you explain CLV to a small business owner who had no formal business schooling? What would be the most important things you would tell her if you had about 15 minutes with her?

Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
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The reading covers the notion of valuing a customer over the entirety of their purchase for their form, or customer lifetime value (CLV).

1. Address these prompts

  1. To calculate CLV percisely requires precise numbers that are often only available to larger firms with large customers and large datasets. Is it necessary to calculate CLV percisely? Explain.

  2. How might a small business or entrepreneur find the CLV concepts useful in making decisions?

  3. How would you explain CLV to a small business owner who had no formal business schooling? What would be the most important things you would tell her if you had about 15 minutes with her?  

 

 

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